Most of Apptio’s revenue comes through subscriptions to products like IT Financial Management, which helps CIOs understand how much they are spending across various cloud providers and identify places in which they can cut back. Subscription revenue was $49.6 million, while revenue from services associated with those subscriptions was $9.6 million, an increase of 26 percent and 27 percent, respectively.

Apptio has been inching toward GAAP profitability over the last year but fell short in the third quarter, posting a net loss of $4.6 million. However, excluding special items, it recorded non-GAAP earnings per share of $0.05, ahead of analyst expectations of $0.03 a share.

The company raised full-year revenue guidance to a range of $233.3 million to $234.3 million. Apptio soon plans to introduce new products for smaller businesses that don’t need the full-blown enterprise tools, said Sunny Gupta, co-founder and CEO, during a conference call discussing the quarterly results with financial analysts.

Investors saw something they didn’t like in Apptio’s results, however, sending its stock down more than 11 percent in after-hours trading.

[Editor’s note: This post was updated as more information became available.]

Tom Krazit, GeekWire's Cloud & Enterprise Editor, covered technology for news organizations including IDG, CNET, and paidContent before serving as executive editor of Gigaom and the Structure conference series. Reach him at tom@geekwire.com and follow him @tomkrazit.